Shell to cut 600 to 800 information technology jobs

Published 5:30 am, Tuesday, June 8, 2004

Shell Oil Co. is cutting 600 to 800 information technology jobs in the United States as part of an effort to save the company $850 million annually beginning in 2008.

The job cuts will be made through attrition, reducing the number of contractors, reassigning some employees to other jobs and offering voluntary severance packages.

Shell hopes to make the reductions by 2006.

Currently, Shell has 9,000 software developers, computer support and other information technology employees worldwide, including 2,200 in the United States. Most of the domestic information technology jobs are in Houston.

"It's about reducing cost and improving quality," said Anne Knisely, manager of corporate media relations for Shell Oil Co., which is based in Houston and is part of the Royal Dutch-Shell Group of Companies.

Workers were told in April about the company's intention to streamline its computer operations. On Monday, they received more details of Shell's "IT Vision" plan.

In addition to the job cuts, Shell plans to reduce the number of computer programs and software applications the company uses, Knisely said.

Shell has hundreds of information technology contracts and arrangements but plans to scale that number down to less than 30.

Shell is also working toward using a single computer operating system instead of the wide assortment of systems it now has.

Shell also plans to send more of its work to India and Malaysia. Shell recently signed contracts with IBM and Wipro in India for software support and application development.